11. Stock-Based Compensation

Equity Incentive Plans – The Company adopted the 2013 Equity Compensation Plan under which the Company reserved 500,000 shares of common stock for the purpose of providing equity incentives to employees, officers, directors and consultants including options, restricted stock, restricted stock units, stock appreciation rights, other equity awards, annual incentive awards and dividend equivalents. The plan provides for a maximum of 500,000 shares that could be acquired upon the exercise of stock options or the vesting of restricted stock.

Stock Options

The following table summarizes the Company's stock option activity for the three months ended March 31, 2015:

A summary of the changes in the Company's unvested stock options is as follows:

On March 23, 2015, the Company granted 32,857 stock options to certain directors for future services. These options had a fair value of $61,443 using the Black-Sholes option-pricing model with the following assumptions:

The options are exercisable at an exercise price of $4.90 per share over a ten-year term and vest over one year. Compensation expense was deminimus for the three months ended March 31, 2015 pertaining to this grant.

The Company recorded non-cash compensation expense of $11,403 and $0 for the three months ended March 31, 2015 and 2014, respectively, pertaining to stock options.

Total unrecognized compensation expense related to unvested stock options at March 31, 2015 amounts to $218,644 and is expected to be recognized over a remaining weighted average period of 1.74 years.

Warrants

A summary of warrant activity for the three months ended March 31, 2015 is as follows:

All warrants outstanding were fully vested as of March 31, 2015 and December 31, 2014.

No compensation cost was recognized during the three months ended March 31, 2015 and 2014 pertaining to warrants.

Restricted Stock

A summary of restricted stock activity for the three months ended March 31, 2015 is as follows:

The Company recorded non-cash compensation expense of $110,667 and $0 for the three months ended March 31, 2015 and 2014, respectively, pertaining to restricted stock.

Total unrecognized compensation expense related to unvested restricted stock at March 31, 2015 amounts to $885,339 and is expected to be recognized over a weighted average period of 2.7 years.